Add up the checks you have received in 2005 from the sales of screenplays or fees that you received for writing or revising scripts. Add any amounts that you received for options on scripts in 2005. Enter the total on line 1.

Royalties -- While the income you may receive from the sale of screenplay you wrote may sometimes be called "royalties" they are reported on Schedule C, not on Schedule E (Rents & Royalties).

Prizes and Awards -- DO NOT enter cash awards from screenwriting contests on Schedule C. Prizes and awards are not considered "income from a trade or business." They are taxable, however, and should be included under "Other income" on line 21 of Form 1040. If the award was not in cash you must determine the value of the prize to you. This is usually what you would have had to pay for the prize if you had purchased it. Report this on line 21 of Form 1040 just like a cash award. Any organization giving a prize worth $600 or more is required to report the amount on Form 1099-Misc and send a copy to you. However, many small organizations are not aware of this requirement and fail to send out the 1099's. Thus it is often up to you to keep track of the amount awarded. You should keep any letters you receive about the award along with a record of the value of the prize.